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HOTEL OWNER Will Reflag or Sell 122 Marriott Int'l Properties / Kauai Beach Club Timeshare Co-Location Affected? [MERGED]

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pedro47 said:
Financially this is a good move by Marriott's to sell off those under performancing hotels to Sonesta.
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Marriott isn't selling anything. It is the owner of the hotels (not Marriot) that is pulling out and moving their hotels to Sonesta. Marriott doesn't own properties, they just manage, license or franchise them out. Kind of like McDonalds.
 
It appears that most of the hotels are Courtyards, so no big loss IMO. Many of the ones I am familiar with are older properties.
 
dioxide45 said:
Marriott isn't selling anything. It is the owner of the hotels (not Marriot) that is pulling out and moving their hotels to Sonesta. Marriott doesn't own properties, they just manage, license or franchise them out. Kind of like McDonalds.
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Correction the owner of the hotels are pulling out and are moving their hotels to Sonesta.
 
I’ve only stayed at a Sonesta once (Rittenhouse Square in Philly). To be honest, I wasn’t that impressed. The room was fine and clean, but pretty basic.

Given the lack of Sonesta hotels outside of the US, I can’t see how this would impact my travel plans at all. There will still be plenty of Marriott, Hyatt or Hilton’s to choose from if I want to stick with a loyalty program. Sometimes there is a special hotel that is worth staying at, but Sonesta doesn’t really have any distinguishing features or locations that would lead me to choose them over another chain.
 
Obviously the Owner of the properties was not happy with Marriott's performance and terminated them...

George
 
bogey21 said:
Obviously the Owner of the properties was not happy with Marriott's performance and terminated them...

George
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Not really. Service Trust owns a controlling interest in Sonesta. They moved almost as many IHG hotels earlier this year. It is purely a move to bulk up their own brand.
They had been trying to sell a bunch of these properties (including Kauai) earlier. Then in February renegotiate a bunch of the management contracts to include the opt out in early february.
Marriott decided that they didn't want to subsidise these hotels so they are letting them go. They are however disputing the timing of when it kicks in, so will be interesting to see what the lawyers say about all this.
 
The article says it’s to early to tell how this will affect the timeshare owners. I’m wondering if this will be similar to what happened in HHI or in Vail. I believe in both of those it was Marriott that initiated removing its name and, both where before the destination club.

If I was an owner at KBC, I had joined the DC and I had bought additional DC points to elevate my membership level, I think I’d be nervous first, then ticked off if I lost status because Marriott just wasn’t interested in my property anymore.

And what about when Marriott spun off its timeshare portion so that it was its own company? What does that mean in this situation. Will it a
End up being something like when HGVC took over the management of Elara in Vegas from Westgate where there are Westgate owners having ownership rights in a Hilton managed timeshare? What a weird situation this could turn out to be.
 
dougp26364 said:
The article says it’s to early to tell how this will affect the timeshare owners. I’m wondering if this will be similar to what happened in HHI or in Vail. I believe in both of those it was Marriott that initiated removing its name and, both where before the destination club.

If I was an owner at KBC, I had joined the DC and I had bought additional DC points to elevate my membership level, I think I’d be nervous first, then ticked off if I lost status because Marriott just wasn’t interested in my property anymore.

And what about when Marriott spun off its timeshare portion so that it was its own company? What does that mean in this situation. Will it a
End up being something like when HGVC took over the management of Elara in Vegas from Westgate where there are Westgate owners having ownership rights in a Hilton managed timeshare? What a weird situation this could turn out to be.
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Just theorizing here, but the hotel and timeshare portions of this property are already managed by two different companies - Marriott Vacations Worldwide (timeshare) manages and operates the timeshare towers and Marriott International (hotel) manages the hotel tower. How the responsibility for the common areas is divided between the two companies depends on whatever legal agreements likely exist between the hotel company and the timeshare company.

I think it is unlikely that the timeshare portion of the property would change and move away from Marriott Vacation Club.

At minimum they will likely need to separate the front desk/check-in positions (separate check-in desks for Sonesta hotel and MVC timeshare) and perhaps they will need two concierge desks. Signage may get a bit messy and confusing. I would expect the MVC timeshare HOA and the hotel management company (Sonesta) will split the operating costs of pools and other common amenities on some pro-rata basis just as they likely split them today between MVC and Marriott International.

The cleanest option would be for Marriott Vacations Worldwide to just offer to buy the remaining hotel tower from SPT and convert those to timeshare interests that would just be deeded over to the DC Trust. But given the current economic environment, that might be hard to justify the capital outlay.
 
There are physical deeded weeks at KBC in the DC trust. That ownership doesn't go away if the hotel is sold or transfers management to Sonesta.
 
It would be interesting to know why initially,the property was split into two ownerships when Marriott renovated their portion into timeshares.
 
[MERGED]

Per the BestofHawaii.com, reported this morning the HOTEL is in default as of last week. No news or speculation on what will happen or what it means for timeshare owners. Marriott has not officially commented. Find the full article here: Beat of Hawaii
 
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There is a much more fulsome discussion of this in another thread. You may wish to request this gets merged into that one.

[Link disabled after merge.]
 
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cowboy said:
It would be interesting to know why initially,the property was split into two ownerships when Marriott renovated their portion into timeshares.
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Since Marriott wanted to sell deeded timeshare ownerships, there really wouldn't be any other way. A lot may also depend on who owns common areas and such also.
 
This will be interesting and messy. While there are quite a few and important differences between this and what happened with Spicebush, Swallowtail and the Saturday villas on HHI as well as Longboard Key and part of Vail; I could see the property being removed from the MVC system if this all goes south. Vail is a better comparison IMO but we've seen other situations that tell us MVC is willing to move on even to resorts they actually built as I understand they have threatened both Aruba Ocean Club and Beachplace Towers with expulsion in the past, I'm not sure if there are other examples. But I could also see a separate check in but no pool or other infrastructure coming out of this.
 
Moderator Note: Quite a few thread merges are happening so this has been re-titled. As things progress I expect this thread will focus on possible impacts to Kauai Beach Club; please let me know if you think anything else needs to be a stand-alone TUG thread. Thanks!
 
This makes me glad that we just sold our week back to MVCI.
 
JanT said:
This makes me glad that we just sold our week back to MVCI.
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MVCI took our unit via ROFR earlier this year (we were sellers). I'm happy to be watching this from a distance, too.

The public spaces for the timeshares and the hotels are inextricably connected; it's not only the matter of the check-in desk. The half-acre pool, the parking, the open arcade, and the beach are shared amenities -- and are covered by a very detailed contract which presumably covers this situation.
 
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Well, cr@p! I just got home from a month on the road and read about this. Our Marriott oceanfront KBC unit has been great to use, and has been an awesome trader with Marriott preference. Now what??? We had no heads up that this was even a possibility.
 
dioxide45 said:
Since Marriott wanted to sell deeded timeshare ownerships, there really wouldn't be any other way. A lot may also depend on who owns common areas and such also.
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I believe that Marriott originally took over the whole property after the devastation by Hurricane Iniki in 1992. It had been a Westin hotel with the fantasy Kauai Lagoons golf course and animal park on top of the hill. KBC timeshare sales were well underway in the fall of 1995, when we bought. Perhaps Marriott repaired the hotel first, to ensure cash flow while developing the timeshares (remember, MVCI wasn't a separate company back then)... but I don't know when they would have sold that property to Service Properties. Didn't Marriott (MAR) sell off a lot of their real estate around the same time they spun off MVCI, focussing instead on management contracts?
Maybe someone here can give a more definitive history - I'm just going off vaguely remembered lore.
 
[MERGED]

How do you think the loss of the hotel side of the property to Sonesta will affect the Marriot Beach Club timeshare in Kauai?
We’ve always enjoyed trips there.
Is anyone there now or planning a stay?
 
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Another ongoing thread [link disabled after merge.]
 
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[MERGED.]

Recently became aware of change of ownership at this MVC where I am an owner.
 
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MVCRoadWarrior59 said:
Recently became aware of change of ownership at this MVC where I am an owner.
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The hotel side changed ownership. MVC still owns the timeshare. No changes in ownership of the property you own.
 
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